Social payments via prepaid card

Social security payments in the USA are to be paid by a prepaid debit card. The new program was introduced by the US Department of the Treasury's Financial Management Service (FMS) to assist customers without bank accounts. Primarily people of ten states will be able to use the Direct Express Debit MasterCard card, and later this summer the card is planned to be rolled out across the whole country.

Customers using the Direct Express card are enabled to make purchases, pay bills and withdraw cash from ATMs and retail locations.

Among all other functions FMS provides payment services to Federal agencies and operates the Federal Government's collections and deposit systems. It provides accounting and reporting services, is responsible for the collection of USD 3.7 billion per year in delinquent debts owed to the Federal Government and collects USD 3.1 trillion per year, representing government revenues.